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Turbine Engine Parts: Sources of Imports data, the fears of U.S. labor unions about the em- ployment, trade, and competitive effects of offsets and RRSPs do seem to be founded. The issue is one worthy of further investigation. In the final analysis, it appears that factors other than wage dif- ferentials or comparative advantage are fueling dis- investment from U.S.–based production activities. Country France United Kingdom Germany Canada Japan Israel Singapore Italy Sweden Mexico 1998 Imports 108 79 Country China (PRC) Taiwan 1998 Imports ($ million) 68 56 54 51 46 ($ million) 1,902 1141 Switzerland Belgium 755 517 277 South Korea Norway Turkey 217 206 158 Ireland Netherlands Brazil Turning now to the question of technology, is 28 there reason to think that technological change these components. Thus, it is difficult to make the case that up to this point the globaliza- tion of aircraft engine manu- facture has been based on low- wage, foreign competition. Still, a contingent of newcom- ers is making rapid inroads in joining the supplier ranks. Im- ports of turbine engine parts from Israel, for example, in- creased from $41 million in 1989 to $217 million in 1998. Imports from South Korea, valued at $54 million in 1998, are close to triple their 1989 level of $19 million, whereas imports from Turkey saw a similar growth pattern, from $12 million in 1989 to $46 million in 1998. Far and away the fastest rising star is Singapore, whose exports of engine parts to the United States have increased tenfold since 1989 (from $20 million to $206 million).33 For most of these emerging sources of en- gine parts, military offset pro- grams and coproduction agree- ments appear to have been an important source of learning opportunities. Based on these Ratio of Value Added to Value of Industry Shipments, U.S. Aircraft Engine Manufacturing The ratio of value-added by domestic manufacture to the value of the industry’s final shipments has been on the decline for nearly 30 years. 63% 32 16 13 12 had something to do with the “divergence of for- tunes?” The answer is yes, but again, the econo- mists’ traditional characterization of the phenom- enon is somewhat off base. During the first half of Ratio of Import Value to Value of U.S. Industry Shipments Trends reflect the rise in cooperative production agreements with foreign supplier firms. 35% 30% 25% 20% 15% 10% 5% 0% 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 61% 59% 57% 55% 53% 51% 49% 47% 45% Ratio Trend 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 Jet Engine Manufacturing in New England 15PDF Image | JET ENGINE MANUFACTURING IN NEW ENGLAND
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